Buy Bullish Apple, Google Options Before Earnings, UBS Advises

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  • s4sree
    • Oct 2006
    • 4854

    Buy Bullish Apple, Google Options Before Earnings, UBS Advises

    January 13, 2011, 11:47 AM EST By Cecile Vannucci and Jeff Kearns

    Jan. 13 (Bloomberg) -- Investors should buy bullish options on Apple Inc., Google Inc. and Amazon.com Inc. because the companies may rally on better-than-estimated earnings reports, UBS AG said.

    Equity derivatives strategist Mitchell Revsine recommended buying February call options on the stocks while selling calls with higher strike prices, a strategy known as a call spread, which cuts the cost of the trade while capping potential profit.

    --Editor: Joanna Ossinger

    To contact the reporter on this story: Cecile Vannucci in New York at cvannucci1@bloomberg.net.

    To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.





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